Carbon Dioxide Removal Purchase Program.

Senator Caballero's Carbon Dioxide Removal Purchase Program legislation establishes a $50 million state initiative to acquire and permanently retire carbon dioxide removal credits from qualifying projects in California between 2026 and 2035. The program, administered by the State Air Resources Board, aims to advance carbon removal technologies while delivering economic and environmental benefits across the state.

The legislation creates a framework for purchasing credits from projects in multiple categories, including direct air capture, biomass carbon removal and storage, enhanced mineralization, and marine carbon dioxide removal. Individual purchases are capped at $25 million per project category and $12.5 million per project sponsor. All eligible projects must operate within California, incorporate community benefit mechanisms, and ensure removed carbon remains sequestered for at least 100 years.

The Air Resources Board must adopt comprehensive program guidelines by June 30, 2026, defining project eligibility standards and verification requirements. The guidelines prohibit using carbon dioxide removal processes for enhanced oil recovery and restrict biomass feedstocks to agricultural and forest residues. The board will conduct annual surveys of carbon removal projects statewide and publish regular reports on program activities and credit purchases.

The program builds upon California's existing climate initiatives, including the state's 2045 carbon neutrality target and the Carbon Capture, Removal, Utilization and Storage Program. The Air Resources Board's 2022 Scoping Plan identifies carbon dioxide removal as essential for meeting the state's goal of removing 75 million metric tons of carbon dioxide annually by 2045.